Private Mortgage Insurance (PMI) can be dropped if refinance achieves or stays under 20 percent equity or 80% Loan-to-Value
PMI costs can be reduced if reducing the Loan to Value on the home, or if credit scores have improved since obtaining original loan. Or, if converting from an FHA loan to a Conventional loan
Appraisals waiver may be awarded, which means you might not have to pay for or obtain an appraisal
Term lengths can vary between 10 and 30 years
Requirements to Qualify
Debt to income must be under 43%, but can be higher if mitigating factors exist like strong credit score, asset reserves, and strong credit history.
While you CAN qualify with a credit score as low as 620. Typically, it’s best to keep a minimum conventional credit score at 680 or higher if doing a 16+ term loan with less than 20 percent equity.
Two years of work history (does not have be consecutive years, and can be multiple employers)
